00:01
Hello students, here is a question which of the following statement is incorrect.
00:04
So, option a is creditor generally receives the first claim on the firm's cash flow and the second is bondholders can issue the firm of a firm.
00:14
Let us write down the answers.
00:16
So, the first option says that creditors generally receive the first claim on firm's cash flow and our second option is bondholders can issue the firm if the firm defaults on the bond contracts on a bond contract and when it comes to option c, shareholders equity is the residual differences between assets and liabilities.
01:35
So, when it comes to option d, bondholders often can gain excess cash, can gain excess cash, cash flow over the interest, over the interest and principal repayment.
02:15
So, this is our question.
02:17
So, therefore, our option a is the right answer...